TransCanada, through its wholly owned subsidiary NOVA Gas Transmission Ltd. (NGTL), and ATCO Pipelines have entered into an agreement to exchange ownership of approximately 1,288 km (800 miles) of natural gas pipelines and related facilities in Alberta. The asset exchange involved four phases or “tranches” and was completed in September 2016.
To initiate the asset exchange, in 2009, TransCanada and ATCO Pipelines entered into the Alberta System Integration Agreement, which integrated commercial service on the two pipeline systems and proposed the exchange of pipeline facilities. Since then, TransCanada and ATCO Pipelines have completed a detailed review of their pipeline systems and completed the Asset Swap Agreement, which identified the specific pipeline facilities to be exchanged between the two companies. As a result, pipeline facilities being transferred from TransCanada to ATCO Pipelines shifted from the National Energy Board (NEB) regulatory framework to the Alberta Utilities Commission (AUC) regulatory framework that governs the ATCO Pipelines system. Facilities transferred to TransCanada from ATCO Pipelines will shift to the NEB, which regulates TransCanada’s Alberta System.
Separate applications were filed by ATCO Pipelines and TransCanada with the AUC and NEB to acquire the necessary approvals for the asset exchange. ATCO Pipelines obtained the necessary approval for the exchange from the AUC on November 22, 2012. TransCanada filed an application to the National Energy Board on November 12, 2013, and obtained the necessary approvals (Certificate of Public Convenience and Necessity GC-123 and Amending Order AO-004-GC-113) on December 16, 2014.